Bursa Malaysia Bhd and FTSE Russell will expand the FTSE Bursa Malaysia KLCI to 50 constituents from 30, marking the first change to the benchmark’s methodology since 2009. The phased rollout begins December 21, 2026 and is designed to broaden the index’s representation of Malaysia’s growth sectors, including technology, energy and REITs.
Key Facts At A Glance
- FBM KLCI to expand from 30 to 50 constituents, its first methodology change since July 2009
- Implementation in two phases: December 21, 2026 (new constituents at 50% weight) and June 21, 2027 (100% weight)
- FTSE Bursa Malaysia Mid 70 Index to shrink to 50 constituents and be renamed the FTSE Bursa Malaysia Mid Cap Index
- FTSE Bursa Malaysia Top 100 Index remains unchanged at 100 constituents
- Expanded KLCI projected to cover about 70% of Main Market capitalization, up from roughly 60%
- Simulations using end-June 2026 data show technology, energy and REIT names entering the index for the first time
- Changes follow a public consultation held between March 31 and April 24, 2026
- A 10% company-level capping mechanism will apply to the expanded index
Bursa Malaysia and FTSE Russell announced the enhancement following a formal consultation process launched earlier this year to address concerns that the 30-stock benchmark no longer reflected the breadth of Malaysia’s listed market. Under the joint statement, the exchange operator and index provider said the expanded index would increase representation of Main Market capitalization to approximately 70%, up from around 60% currently, based on simulations using data as of end-June 2026.
Phased Rollout To Limit Market Disruption
The expansion will occur in two stages. In the first phase, effective December 21, 2026, 20 new constituents will be added to the FBM KLCI at 50% of their eventual index weight. The second phase, effective June 21, 2027, will bring those constituents to full weight, completing the transition to 50 stocks. Bursa Malaysia and FTSE Russell said the staggered approach is intended to reduce concentrated trading flows and ease portfolio rebalancing pressure for index-tracking funds.
The companion FTSE Bursa Malaysia Mid 70 Index will be reduced to 50 constituents on December 21 and renamed the FTSE Bursa Malaysia Mid Cap Index, while the broader FTSE Bursa Malaysia Top 100 Index will remain unchanged.
Sector Composition Set To Shift
Based on end-June 2026 simulations, the enlarged KLCI would for the first time include technology, energy and real estate investment trust names, while reducing the current concentration of financial services stocks in the benchmark. Bursa Malaysia and FTSE Russell cautioned that actual constituent and sector composition will depend on eligibility criteria at the relevant review dates.
Bursa Malaysia chief executive Datuk Fad’l Mohamed said the Malaysian equity market had evolved considerably as growth sectors gained scale alongside established industries, and that the enhanced index would provide a broader reflection of the domestic economic landscape while preserving investor relevance. FTSE Russell group head of equity and multi assets Gerald Toledano said the changes would help keep Malaysia’s flagship benchmark representative and investable, citing strong support received during the consultation process.